Controversial Somerset estate agent Jules Bending has called for agents to change the way they operate or risk a future where everyone will be selling their own properties.
Glastonbury-based Bending, who has become notorious for his tongue-in-cheek property adverts that have had him banned from the local paper and also Rightmove, said: “Estate agents are their own worst enemies.”
He said many agents are “thick and lazy” and that when he started out, they were typically former minor public school boys who weren’t bright enough to become lawyers.
Bending said that agents competed only on price and fees: “Both offer a recipe for disaster,” he said.
“Each agent knows the other will overprice and undercut to get the instruction and so an ever-upward and unsustainable spiral with ever-diminishing volume and fees is born.
“The banks were foolish enough to fuel this, but the problem originated with agents who didn’t have enough balls to move away from the pack.
“And they could have. I thought about opening a western-themed agency before Ralph Bending. There would have been a wooden floor, a bar, spittoon, piano player, tables etc. The window would be styled with cowboy ‘wanted’-style window cards and the local paper with the same style ads. I would have drawn the line at using a horse to get to viewings.
“There are loads of ways agents could differentiate themselves from each other and show their individual strengths and personalities. Is it any more dangerous than staying as we are?
“Over the last two years 11 agencies have closed around here, in an eight-mile radius. I fear if we don’t change and reflect the society we live in we’ll be left behind.
“It’s possible that in the future there will only be something like Facebook / Rightmove and everybody will be selling their own houses. Unfortunately, for consumers, that’s not such a hideous thought.”
For the unbelievers among you, Bending has asked us to post up his latest monthly bank account, showing a very healthy (and some would say, rather eviable) balance.
Comments
Ah,
FTB Dan - forgot to say, I flogged my big gaff and my poxy little BTL in early 08, felt / saw it coming and slung my hook into rented, glad I did too mate my salary halfed and some back then
Jonnie
Hey FTB Dan,
sit down fella, were all having a drink and a chat, no need to get funny and all that.
Now, let's iron this price thing out - I've said this lots on here, I don't have any issue with falling prices, did us all okay in the 90's with no bother and there is only one thing worse than an arm chair economist buyer that's taking prices down and that's an arm chair economist seller that doesn't understand the buyers won't bite unless they are sensible.
The thing that you never get the hang of is agents like volume, lots of buyers, lots choice for everyone and lots of deals - marvellous, and with that comes lots of mortgages for our friend at the back of the office (the broker)
..............so, if I have ever said that I like constantly rising prices with the silly attitude it gives every seller then yes I will admit to being a plonker.
Jonnie
PS - my best man was a bloke in rented that wanted prices to come down a lot
Jonnie, you total plonker. I do not think EA's are knobs, as I have said before the best man at my wedding is an EA. I get on really well with a bunch of EA's in my area where I am looking.
You simply think I hate you all, because you all hate me. You all hate me because I make the case for why property prices are going to come off by a good margin and most of you are into BTL or mortgaged up to the eyeballs to start your own agency. But I have not the slightest dislike for EA's at all, only prats who also happen to be EA's.
Btw, so you all want to hate for for saying that house prices are going to fall after the market has been off 3% a day for a week. The economy is about double dip nasty-style, and there is no way house prices will rise on the back of that. Just my opinion, no need to pee yourself.
people the message is clear: agents must change or die. i don't think they'll ever change. they should just quit (die) and then we would all live in a far better world.
I think Roz was after a free holiday in Ibiza.
Oh Lord no!
I did say in an earlier post this Jules bloke would possibly be good fun on a night out but I had doubts about the smugness…………….now he’s gone an shown us his flipping bank statement and its not the smugness that ruins him it’s the tosspottery he displays.
Jules, for the love of god man, please stop it I can’t bear to see you make a fool of your self whilst speaking for the industry like this and Roz stop encouraging him, you’ll make him think its okay and you are the self proclaimed voice of the industry.
If he goes on like this then I will have no choice but to apologise to Will Hicks, BRIT123, FTB Dan and all the others who ive been horrid to on here, if this bloke is what you see as representative of the EA world then I don’t blame you for thinking we are all knobs
Jonnie
P.s – from hitting submit ill count how long it takes for one of you to say you thought we were all knobs before Jules ‘ King Knob’ Bending rocked up
[He said many agents are “thick and lazy”]
To be perfectly fair I have met many agents who are only one of those. Occasionally, you find agent who is neither, but they are very rare indeed.
Jules, your not doing as well as you might think, but you are £10k in the black, which is better than some!
As for agents competing on fees & price, there is a little truth in this, but the smart agents have linked the two up to make even more profit! You see, rather than base their selling fees on the sale price, they fix their fee based on the initial asking price. That way they can have their cake & eat it. They over value the property or simply agree to list it at the sellers requested asking price, they fix their fee to this, which could be similar to a fairly low fee (Say 1.5% +VAT equivelent), but when the property finally sells for much less, their initial fixed fee remains and it would then equal a respectable 1.75% +VAT in real terms.
As it goes, we don't use fixed fees and stick to the percentage system. We also don't compete on asking price. They want to sell the property with us, they use our recommended asking price, nothing more and if they don't like it, they can go somewhere else! In this market, quality instructions come first of quantity of new business.
Today, I allowed a vendor to buy their way out of a 1.5% sole selling rights contract, which was only a month in and still had 2-months to go, in order that she can use a developer's assisted sales package, which meant a few other agents would get involved alongside us.
The developer sent me a contract to sign and said that they would be paying my 1% multiple agency fee if we sold it instead of the vendor paying us the agreed 2% fee already in my contract with the vendor!!! No way was I agreeing to this. I was sticking to the 2% multi fee or I was going to drop the property. The vendor rang the developer and agreed with them that we would be be employed by her outside of their scheme and she would settle our 2% fee if we sold it. :-) Meanwhile 2-corporates and 1-independant agent will be commencing marketing of this property this week at only 1% +VAT, while we continue at 2% +VAT and have already been paid several hundred pounds for allowing her to leave our contract.
Further more, we have a 7.17% click through rate on Rightmove, which is the highest in the area (Out of 50-agents) and no other agent has ever sold one of our properties, yet we have sold hundreds of properties on a muliple agency basis, so our odds still look good. Furthermore, we have a hot viewing booked for Friday. :-)
The developer said that she had never been turned down by an agent before and that I should be wanting to work for such a prestigious national home-builder. I said, "pay us a fair rate and I'll be happy to, but 1% is a joke, goodbye".
Can you believe that agents are still willing to take on stock for 1% multiple agency!!!! Agents prostitute themselves. The cost of advertising is rising at 20% per year (eg. Rightmove) the cost of fuel, postage and everything else is rising, the sales transaction levels plus selling fees are falling. There is only one conclusion here and that's BUST.
We are still making a profit from sales only and haven't gone down the lettings route, so how's that for success.
Here in the midlands, the market is very slow right now with sales thin on the ground. Lettings seem to be the only thing keeping agents alive, but is it enough?
Ok. . . . if you have finished attacking the messenger (public school boy style).
What about the message: agents competed only on price and fees: “Both offer a recipe for disaster,”
Sorry Jules, you still making loads out of your "property investments" and maybe some sort of local magazine/rag might be a money spinner.
Jules - the balance screen shot is looking like you have had too many nights out at Pacha!!
I always knew I wasn't cut out to be an estate agent : )
@Chris Peacock
Fair point also. ;>)
Fair point Raymondo, however I stand by my initial intention which is to outline that this bloke if NOT an expert in estate agency and I dont believe that he turns over a million quid especially as he have now seen his bank statement.
Nothing against him so much more the fact that EAT could get a real expert to comment rather than a person whos ideas on estate agency come straight out of Viz magazine.
thats £3,193.23!!!!!!!! £1m , doubt it
Might have wanted to doctor that photo a bit to justify your 'earnings', looks like it was only around £3k from the statement! Douche bag.
found a video of Jules on you tube, busy selling all those houses. http://www.youtube.com/watch?v=zkKvRiB_fZw
I do not understand the thinking behind the statement
"....its really easy for your competiors to see how well or badly you are doing just by looking at your website, window, boards........."
One letting agent I know ususally has some 20/30 properties 'To Let' on the web - BUT not shown are the around 2000 let and under management!
"
http://www.independent.co.uk/life-style/house-and-home/property/the-honest-estate-agent-1725787.html
You have to laugh really!!
Why would you feel the need to justify yourself so much that you feel the need to post your bank statement online? Smacks of despiration.
to Anonymous Coward
"Think about it, Haart are doing iSold.com through Tescos and that is growing exponentially"
give it a few weeks and you will see just how well isold are doing ( not ), I predict the end of isold very shortly.
"He said many agents are “thick and lazy” and that when he started out, they were typically former minor public school boys who weren’t bright enough to become lawyers."
I couldn't have written it better myself.
Oh my gosh, for saying how care free he thinks he is, he seems pretty insecure to me, which would explain a lot.
This photo could have been taken off google images, and frankly, nobody cares cos you've still only got 6 houses on the market and a crappy website.
Give up!! And EAT, stop inflating these idiots ego's by printing their articles which they think makes them important.
Im not sure how ive missed this but Ive just noticed the picture of the bank statement for June to July at the bottom of the article. The figures dont exactly match the figures you were quoting in your post. In fact they suggest bankings of 27k (fair) but a profit of 3k (snigger).
Jules Bending estate agency's funniest man!!
66k x 12 = just under 1m . Yeah, sorry your right ive just done the sums and your right, sorry.
I still dont understand why you dont display all your properties for sale and sold, let and to let on your website and how do you get away with charging such a huge percentage. Im assuming you must charge about 10% to sell and about 60%-70% fully managed judging by the level of activity and the sums of money you are suggesting you bank.
You see Jules the thing about estate agency is its really easy for your competiors to see how well or badly you are doing just by looking at your website, window, boards etc. And then for final clarification a search on companies house will confirm what we all already knew.
Anyway I hope the England trials go well for you and yes you are a better driver than Lewis Hamilton and give the queen my regards when you next see her.
Loveley,
Im not sure where to start here, we have this Jules chap with his ‘humour’ and jolly good advice mixed with the admission that he’s pulled out of sales following a year ‘avin it large’ in Ibiza………………not sure what to make of him but sounds like he might be a laugh on a night out although the little whiff of smugness might ruin that.
Then we have Pete, hates estate agents, he’s either a bit of a victim / berk and keeps getting involved with rubbish ones or he’s come home one day to find Mrs Pete in bed with one and hasn’t quite got over it. Whatever the reasons it’s still odd he’s hanging round an EA web site like a closet homosexual in a gay bar.
Anyway, the point of the post – he’s right / I agree, every agent I know that plays on a particular feature does well, that might be everything from bonkers designs of boards, employing lots of hot girls, being an old / stuffy traditional sort, festidiuos attention to customer care, having lots of branches the list goes on.
…………….right – a Western / Cowboy themed EA – yeeeha!
Jonnie
For the doubters. 25 May - 23 June £65,973.00 banked.
Not our best month but not too shabby : )
Ahh, Pete. I'm still awaiting a response on the Energy Performance Certificate article.
Another story in which you tried to sound knewledgeable but ended up looking daft?
Surely there can't be two pete/peter's that have nothing better to do than moan about estate agents?
Another moaner. So they sold your house did they?? Shame on them.
Pete, thanks for your consructive comments.
How did you find "estate agent today" website. As you dont need us or want us how why the fluff are you haunting us like a bad smell.
I feel that you would be better suited at www.housepricecrash.co.uk or www.lonelybitterandtwisted.com
Bye
"what an idiot" says:
> I think that you will find that clients would prefer a professional and serious estate agent
Well, maybe I would (maybe I wouldn't) but either way I don't seem to find many. "Serious" perhaps, but rarely "professional" in my experience.
I guess I can see the value of a *good* agent for wealthy busy people selling large properties. But for the average person selling the average family house with the average high-street estate agent, I just can't see the point of paying a school-leaver in a mobile-phone-salesman's suit to churn out some terrible cliched prose and stick it on two sides of A4 with some mediocre photos.
When buyer and seller do find each other, it's then not at all clear what estate agents add to the process. In my last purchase I considered the agents to be fairly good - damning praise when what I really mean is that they mostly stayed out of the way and allowed the vendor and I to communicate without too much delay or confusion. To their credit, at least most agents are not as bad as most conveyancing solicitors in making a simple transaction difficult.
There used to be a point to estate agents, in that they owned the shop window that prospective buyers were looking at. That shop window is now the Web, and increasingly we're able to get our properties seen in it without involving a traditional agent at all. We don't need you any more, and many of us don't want you.
Pete
This guy is clearly an idiot. How he proclaims to be the voice of estate agency when there are 6 properties listed for sale on his website is absolutely beyond me??!! Why does EAT even print this drivel?
I think that you will find that clients would prefer a professional and serious estate agent to deal with their most valuable asset, not some bloke that thinks he's a comedian.
Oh yes, you make millions from lettings, 25 available. I doubt it.
Jules, Im delighted for you that you are so successful as a letting/managing agent and do so well investing in property that you can spend a year on the white isle.
I was just surprised that EAT feel an estate agent who has just five houses for sale is qualified to commentate on what makes a successful selling agent.
Also Im not calling you a liar but...... £250,000 with 5 houses for sale in Glastonbury. You cant kid a kidder, kidder!
Yes Rant, it's on my mind a lot.
FBA - you were thinking about many of the same issues on the toilet yesterday as well.
Time for a trip to the doctor?
; )
Hello Chris,
To put it into perspective (and be open & honest) I have been in business for 15 years and an agent for 20.
We currently bank just under £1m a year - a large part of which are rents (we manage a lot of property).
Our fees amount to around £250k a year. Three of us work here, we own our own building and other investment property.
So people will use you if you are doing something a little differently.
ps. 4 years ago we had a year off in Ibiza and dropped sales - fortunately as it happens - to concentrate on lettings.
The 'business model' for estate agency is changing, without doubt. But what will it be? Where are we going? What will it look like?
There are far too many agencies on any given high street. They can't all survive the lower volumes.
Corporates are never the strongest in any town or high street so you would think collective 'loss making' offices would be shut down as corporates see loss balances running into millions when adding their offices together. Even they can't prop up sustained losses in EA to provide vehicles for their survey and mortgage business. Independents can suffer less income more readily as owner operators until turnover becomes less than running costs and the only way of staying in business is raising finance against the family home.
Online business models don't seem to have taken off.
Tesco's seem to have lost interest.
The American models do not seem popular.
It is going to change! but to what?
If you wanted to sell your estate agency business today, what would it be worth?
I am spending ages in the toilet contemplating these issues.
If you cant be bothered to look for yourself I have used by abacus to add up isold Bristol's pipeline.........£8,000, assuming that they remove properties as soon as the complete. £8,000 wont keep their negs in hair gel!!
Ok it is so easy to see if the claims as to how well an agent is doing are true.
Look at rightmove searching for isold in Bristol for every house sale the complete the get £1000. They aint making any money, Brains!!!!!
Jules, I agree totally with your last post, and the thread as a whole (not so much the cowboy thing though).
There is so much more that can now be done in terms of showcasing property and yet agents stick to the same old tat. A few (tiny) snaps and a chunk of boring text, a spat out of a template onto copier paper brochure, and if you are really lucky a floorplan (1d of course, and too small to read).
Joe public in most cases is capable of that.
Get a usp and give vendors a real reason to pick you.
I've just looked at Bendings website. Looking at the amount of stock he carries compared to his competitors it seems that not only do people not like the price and fee but also his sense of "humour". As he is not allowed to compete on rightmove and in his local paper I would suggest that it is in fact him who is his own worst enemy.
"Haart are doing iSold.com through Tescos and that is growing exponentially."
Could someone define 'growing exponentially' in this context, please? By how much have they grown since the launch in Bristol a year or so ago?
I think the question is: 'why would people use you?'
They use me because they like my sense of humour, and yes it has got me noticed (lesson 1 in business - get yourself noticed. Lesson 2 - do a good job so they keep coming back).
At the moment most of us look the same, speak the same, offer the same...How does someone chose which agent to go with? Price & fee?
We may not all agree with him, sorry Jules but the 'western' style is not for me but there is definitely method in your madness.
The landscape has changed dramatically, and new technology is within everyone's reach yet as agents we seem to have stood still. Is having a page on Facebook really enough?
Apple changed the mobile phone industry with the iPhone. They didn't catch Nokia napping, Nokia were complacent. Now Apple are No.1!
I don't claim to know the answer but don't you think we are complacent too?
We need a like button on each of the comments like on Facebook!!!!!
Deep breath.
He is right.
Attention seeking, maybe, but it is true.
People are getting used to buying EVERYTHING online.
More and more people are getting used to selling things online (eBay).
We (generally) trust our daily banking needs to the internet.
So....
Mr & Mrs Average Vendor, who don't trust us, not really, and think we charge WAY too much will be looking for alternatives.
All of a sudden there will be a really good, viable way for them to sell their property without the likes of you and me.
People have been predicting the end of estate agents since the mid 90's.
After 15 years, the technology and data is available to everyone.
And (this is the important bit) the general population are ready for it.
That is why Hamptons & Southebys are now owned by Countrywide, why Fine is owned by Haart, why Arun Estates are buying into Fine & Country and so on.
The market for agents will split in 3:
Online/ budget agents
Local high street agents
High end agents
If you are still in the middle group in 5 years you will find that your business will struggle until your high street has 1 or 2 "local" agents left instead of the 8 or 9 now.
Think about it, Haart are doing iSold.com through Tescos and that is growing exponentially.
They will kick your ass, unless you kick theirs first.
Simon, as annoying as this is......that is a very very funny game.....like it alot....!
great game though http://www.ralphbending.com/ralphsgame.html
Have I touched a raw nerve?
I've just poped onto their website. I looks like they have a whole 5 instructions. They must be doing somthing right. I'll follow your lead........not
Please ask yor mother to slap your legs you attention seeking prat
Jules always comes up with some good things great reading and true as well well said Jules keep the articles coming.